Significant new mortgage lending rules, the Ability-to-Repay rule (ATR) and the Qualified Mortgage rule (QM) rules became effective January 10. These are the latest regulations to come from the Consumer Financial Protection Board. Opinions vary as to the extent of their impact, but most agree they will impact some borrowers’ ability to qualify for a home loan. But from the “better late than never” category, on January 14th a Subcommittee of the House Financial Services Committee held hearings to consider how the new rules will harm current and prospective homeowners. Mortgage industry leaders spoke about the limiting effect these rules will have on credit availability, especially on credit for low to moderate income borrowers. Committee members are considering proposed new laws to modify these rules. Stay tuned.
Scott Sanderson · Residential Mortgage Loan Originator · NMLS #213254